The US-based multinational brokerage firm has partnered with Paxos to set up cryptocurrency trading services.
Electronic brokerage firm Interactive Brokers announced yesterday that it was going to allow low-cost cryptocurrency trading. The broker’s clients will now be able to trade and hold cryptocurrencies directly on the platform. The Connecticut-based broker is the latest online retail broker to introduce active crypto into its offering.
Few brokerage firms have embraced digital assets, Robinhood and TradeStation being the other notable names. Other investment management service providers, such as Charles Schwab and Fidelity, indirectly support cryptocurrency trading. Both of these financial services companies provide access to Bitcoin futures contracts.
The news of the integration of cryptocurrency trading is hardly surprising. President Thomas Peterffy announced in June that the broker would integrate cryptocurrencies on its platform by the end of the summer. He explained that this change would suit sophisticated clients. The offer is, for now, exclusively available to US users with individual or joint accounts and covers Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Company CEO Milan Galik noted: “By giving our clients access to cryptocurrency trading, we recognize the need to meet the growing demand from investors to trade cryptocurrencies alongside other asset classes in a convenient and low cost manner. . “
The provision of the new service is facilitated by the regulated blockchain infrastructure company Paxos. The financial institution and tech company, which obtained a banking charter from the Office of the Comptroller of the Currency in April, has previously worked with PayPal to offer digital asset trading services. Interactive Brokers relies on Paxos Crypto Brokerage’s offering as an API to support trading and custody while retaining its clients.
Paxos CEO Charles Cascarilla spoke about the role of the company, saying: “Paxos provides the regulated blockchain infrastructure for businesses to activate crypto securely and with reduced risk. Our collaboration with Interactive Brokers provides experienced investors with fast and reliable access to the digital economy for the first time. “
Crypto asset trading will be offered on the same screen as other traditional assets such as stocks, futures, mutual funds and bonds, providing users with a user-friendly and unified customer experience. The company also highlighted its low commissions in the announcement.
“Cryptocurrency trading with Paxos on the Interactive Brokers platform has low commissions of only 0.12% – 0.18% of the trade value, depending on the monthly volume, with a minimum of 1.75 USD per order. In addition, there are no spreads, markups or additional custody fees. “
Although the service is first starting in the United States, there are plans to expand its scope to cover financial advisers and clients in other markets.
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